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BALKRISHNA INDUSTRIES LTD.
Investor Presentation
May ‘25
Safe Harbor
Investor Presentation
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balkrishna Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the tire industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
2
A Leading Global Brand from INDIA
2.2x Revenue Growth by 2030
Investor Presentation
~Rs. 10,600 cr
2025
5 year CAGR : ~17%
~ Rs. 23,000 cr by FY30
~ Rs. 23,000 cr
2030
~70%
OHT Segments
~10%
3rd Party sales of Carbon Black
~20%
New Tire Categories for Indian Market
4
2.2x Revenue Growth by 2030
Investor Presentation
+
=
New Growth Capex for Carbon Black, Rubber Tracks and New Category Tire: Rs. 3,500cr over next 3 years
Achieve 8% global market share in OHT segment
2.2x Revenue by FY30
5
OHT Strategy
Investor Presentation
▪ Agricultural Tires
: To sustain and further
consolidate global leadership
▪ Mining Tires: Only Indian manufacturer
to develop All-Steel Radial technology up to 57 inches. With full range in both Bias and Radial technologies, the global mining tire market offers a clear runway for accelerated growth
▪ Established a
strong portfolio
in Tracks,
Industrial and Construction tires
▪ The on-going capex of 35,000 MTPA along with De-bottlenecking efforts, the OHT tire capacity will increase to 425,000 MTPA enabling us to reach 8% global market share
▪ Tracks: Expanding of dedicated manufacturing to
for Rubber Tracks;
facility commence production in H2-2026
expected
▪ Reaching 10% global market remains a strategic goal, to be pursued through modular, carefully phased investments
6
OHT Strategy
Investor Presentation
~70% Revenue Contribution by FY30
Achieve ~8% global market share
7
Expand Carbon Black capacity
Investor Presentation
▪ To capitalize on synergies with tire operations and leverage energy and raw material of Directors has approved the expansion of Carbon Black plant
integration,
Board
the
▪ Expansion to be completed by early 2026. Increased Raw material availability, Energy circularity and support sustainability efforts.
capacity
ensure
to
▪ Capacity to increase from 200,000 MTPA to 360,000 MTPA along with a 24 MW cogeneration power plant taking our total co-gen power capacity to 64 MW at Bhuj
▪ Further strengthens market position as a high-quality reliable supplier of Carbon Black to Tire companies in Domestic and International markets
8
Expand Carbon Black capacity
Investor Presentation
~10% Revenue Contribution by FY30
To become a preferred supplier for Tire & Non- Tire segment
9
To enter New Tire verticals for India
Investor Presentation
▪ Planning a modular entry into:
▪ Premium Passenger Car Radial Tires ▪ Commercial Vehicles Radial Tires
▪
Initial focus in on Indian Replacement Market for both the categories.
▪ CV Radial tires pilot will launch in Q4FY26
and will ramp up gradually
▪ PCR tires pilot will follow in Q3FY27 and will
ramp up gradually
10
To enter New Tire verticals for India
Investor Presentation
~20% Revenue Contribution by FY30
Achieve ~5% market share
11
Competitive Advantages
Investor Presentation
Sufficient land and upstream equipment in place. Also possess the talent and systems required to scale the business
The Carbon Black plant generates power manufacturing cost and ensuring control over a key raw material
tire facilities,
for
reducing a major
Investments in brand building will now generate greater value across a wider revenue base
12
Result of Competitive Advantages
Investor Presentation
Expect blended margins post full commercialization to be in the range of 23-25% allowing absolute EBITDA to grow significantly
On enhanced revenue backed by a superior product mix and operational strengths, do not anticipate a significant decline in ROCE as full potential is achieved
13
FY25 Achieved highest ever Annual-Revenue
Investor Presentation
14 14
Performance Snapshot – FY25
Investor Presentation
Sales Volume
315,273 MT
+8% YoY
EBITDA
Rs. 2,682 cr
+16% YoY
Net Profit
Rs. 1,628 cr
+13% YoY
Revenue
Rs. 10,615 cr
+13% YoY
EBITDA Margin
25.26%
+50 bps YoY
Dividend*
Rs. 16/- per equity share
All Figures on Standalone basis
* Total of 1st, 2nd and 3rd Interim Dividend alongnwith proposed final dividend
15
Performance Snapshot – Q4FY25
Investor Presentation
Sales Volume
82,062 MT
Flat YoY
EBITDA
Rs. 703 cr
+1% YoY
Net Profit
Rs. 362 cr
-25% YoY
Revenue
Rs. 2,838 cr
+5% YoY
EBITDA Margin
24.78%
-115bps YoY
Dividend*
Rs. 4/- per equity share
All Figures on Standalone basis
* Final Dividend subject to shareholder clearance in upcoming AGM
16
Sales Volume Profile
Investor Presentation
2,27,131
2,88,795
FY21
FY22
3,01,181
2,92,628
3,15,273
FY23
FY24
FY24
FY25
Sales volumes in MT
All Figures on Standalone basis
17
Volume Profile
Investor Presentation
Segmental Sales
Channel Sales
Geographical Sales
3.5%
1.5%
11.1%
25.7%
36.6%
FY25
59.9%
FY25
28.6%
FY25
45.1%
Agriculture
OTR
Others
Replacement
OEM
Others
Europe
Americas
India
RoW
72.8%
15.2%
All Figures on Standalone basis
18
Profit & Loss
Particulars (Rs in Cr)
Revenue from Operations
Realized Gain on Foreign Exchange
Raw Material
(Increase) / Decrease in Stock
Employee Expenses
Other Expenses
EBITDA Margin
Other Income
Unrealized Gain / (Loss)
Interest & Finance Charges (Net)
Depreciation
Tax
PAT Margin
All Figures on Standalone basis
Profit Before Tax
Profit After Tax
Q4FY25
Sales (MT)
82,062
Q4FY24
82,085
YoY
-0.0%
FY25
FY24
315,273
292,628
Standalone
2,747
91
2,838
1,352
32
128
622
703
Total Income
EBITDA
2,673
24
2,697
1,252
8
111
627
699
24.8%
25.9%
55
-58
49
176
475
113
362
88
49
30
172
634
153
481
12.8%
17.8%
5%
1%
-25%
-25%
10,413
202
10,615
5,119
-56
494
2,377
2,682
25.3%
267
7
125
674
2,156
528
1,628
15.3%
9,299
77
9,375
4,521
-47
441
2,138
2,322
24.8%
275
55
109
644
1,899
461
1,438
15.3%
Investor Presentation
YoY
8%
13%
16%
14%
13%
19
Balance Sheet
Particulars (Rs. Cr.) ASSETS Non-current assets Property, Plant and Equipment Capital work-in-progress Investment Property Other Tangible Assets Right of use Assets Financial Assets (i) Investments (ii) Other Financial Assets Income Tax Assets (Net) Other non-current assets Current assets Inventories Financial Assets (i) Investments (ii) Trade Receivables (iii) Cash and cash equivalents (iv) Bank Balances other than (iii) above (v) Loans (vi) Others Other Current Assets TOTAL
Mar’25
Mar’24
10,040 6,834 985 61 1 17
1,562 106 21 453 5,519 1,716
1,703 1,611 57 6 10 91 327 15,560
9,012 6,204 944 64 0 15
1,337 155 15 277 4,593 1,271
1,349 1,543 48 5 7 70 301 13,605
All Figures on Standalone basis
Particulars (Rs. Cr.) EQUITY AND LIABILITIES EQUITY Equity Share Capital Other Equity
Non-Current Liabilities Financial Liabilities (i)Borrowings (ii)Other Financial Liabilities Provisions Deferred Tax Liabilities (Net) Other Non-Current Liabilities
Current liabilities Financial Liabilities (i) Borrowings (ii) Trade Payables (iii) Other Financial Liabilities Other Current Liabilities Provisions Tax Liabilities TOTAL
Investor Presentation
Mar’25
Mar’24
10,384 39 10,345
8,862 39 8,823
1,013
1,162
387 22 43 457 103
691 16 30 349 75
4,163
3,581
2,825 746 302 285 5 - 15,560
2,345 791 258 182 4 - 13,605
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Cash Flow
Particulars (Rs. Cr.)
Operating profit before working capital changes
Changes in working capital
Cash generated from operations
Direct taxes paid (net of refund) and others
Net Cash from Operating Activities
Investor Presentation
FY25
2,665
-432
2,232
-479
1,753
FY24
2,307
163
2,470
-418
2,052
Net Cash from Investing Activities
-1,477
-1,468
Net Cash from Financing Activities
Net Change in cash and cash equivalents
-268
9
-568
17
All Figures on Standalone basis
21
Resilient Business Model
Investor Presentation
Gross Cash and Cash equivalents of Rs. 3,327 Cr as on 31st March, 2025
Diversified Product Portfolio, spread across Agriculture, Industrial, Construction, Earthmoving, Mining, Port, Lawn and Garden and ATV tires
Self Reliant in Carbon Black along with Multiple sourcing arrangements for other Raw Materials
Total Achievable capacity to reach ~425,000 MTPA post completion of current tire capex and de-bottlenecking
BKT has built a resilient business model and is confident to withstand the near-term challenges to emerge stronger with a higher global market share
22
BKT: Growing Together
Investor Presentation Investor Presentation
23 23
India Production and Global Sales
Investor Presentation
a i d n
I
e s a B g n i r u t c a f u n a M r u O
Waluj, Maharashtra
Bhiwadi, Rajasthan
Chopanki, Rajasthan
Bhuj, Gujarat
Note – Maps not to scale. All data, information, and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness
24
Serving Global OEMs
Investor Presentation
The Brand Names and logos mentioned are the property of their respective owners and are used here for identification purposes only
25
Business Practices Driving Long-Term Sustainability
Investor Presentation
Energy Efficiency
Environment
Waste Management
▪
▪ ▪
▪
To ensure energy efficiency Initiated use of ‘Green Energy’ – installing 5MW windmills and 7MW solar power plants for our greenfield projects 40MW Captive Power Plant Capacity Installed 66TPH tail gas boiler received from carbon black plant thus recycling waste gases & reducing coal consumption Installation of power management system to increase power generation from turbine set
▪
▪
Controlled emissions through electrostatic precipitators in boilers and discharge through appropriate effluent treatment plants Planted approximately 1,00,000 trees in and around Bhuj plant
▪
▪
▪
▪
Implemented disciplined waste management system for systematic collection of scrap and safe storage/disposal, re-use of wastes recycling of waste like Promoted industrial reclaim rubber, crumb powder and rubberized friction compound Usage of Jumbo plastic bags replaced by mobile silos for carbon black transfer to Tire plants Foldable container usage for carbon black transfer to other tire plants
26
Ratings
Investor Presentation
S&P Global ESG score: 53 (+11),
Top among Indian Industry Peers
CRISIL Rating: AA/Positive to AA+/Stable
Crisil ESG Rating: 57 (+3), Adequate
27
Promoting Education, Health & Rural Development
Investor Presentation
Our Endeavour is to improve the lives of children and adults, and our mission is to ensure health with dignity to every underprivileged children and adult
28
Well recognized International Brand
Investor Presentation
29
Strengthening BKT Brand: India
Investor Presentation Investor Presentation
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Ranveer Singh is the Brand Ambassador of BKT
30
Strengthening BKT Brand: India
Investor Presentation Investor Presentation
Ravichandran Ashwin is the Brand Ambassador of BKT
31
Thank You
Company
Investor Relations Advisor
Balkrishna Industries Ltd. CIN - L99999MH1961PLC012185 Mr. M S. Bajaj - Senior President & Director (Commercial) & CFO msbajaj@bkt-tires.com investors@bkt-tires.com www.bkt-tires.com
Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Mr. Shogun Jain shogun.jain@sgapl.net
+91 77383 77756 www.sgapl.net
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